States Taking a Hit on Medicaid Match April 1

A new analysis by CSG of enhanced Medicaid match rates under the American Reinvestment and Recovery Act found that the average state will lose 21 cents in federal funding for every dollar the state puts towards paying Medicaid bills beginning April 1. This decrease follows on the heels of a 37-cent loss states suffered on Jan. 1.

The report looks at the value of the Recovery Act enhanced Medicaid match to states from 2009 through this year. CSG calculates the match in an easy to understand manner: for every dollar a state spends for Medicaid, we calculate how many federal dollars flow to the state through the federal match. For instance, for every state dollar Mississippi spent in 2010, the federal match added another $5.61. In states with stronger economies the enhanced match was not as much, but still made a significant difference. For example, in Massachusetts, spending a state dollar on Medicaid yields one matching federal dollar under the regular Medicaid match formula. During 2010, one Massachusetts dollar drew $1.60 in federal matching funds.

See the full report and its charts and tables here.